ACCT 500: Signature Assignment: Finance Assessment –pick a random companyPart A: Financial Statement Analysis...ACCT...

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Accounting

ACCT 500: Signature Assignment: Finance Assessment –
pick a random company
Part A: Financial Statement Analysis Select the most recentfinancial set of financial statements for the company of yourchoice. Be sure to have your company approved by your professor.Here is the scenario for your project: You are the newly appointedtreasurer and your partner is the newly appointed controller ofyour company. In order to learn more about your company, you havedecided to analyze the company’s financial performance over thelast 2 years. To do this, you have decided to calculate thefollowing ratios for the company’s 2 most recent years in the notedcategories: 1. Profitability Ratios a. Gross Margin Percentage b.EBIT Margin Percentage 2. Resource Management Ratios: a. Age ofInventory b. Age of Accounts Receivable c. Age of Accounts Payable3. Liquidity Ratio: a. Current Ratio 4. Leverage Ratios a.Debt-to-Assets Ratio b. Debt-to-Equity Ratio c. Interest CoverageIn addition, you have decided to evaluate the Return on Equity(ROE) of the company by calculating the DuPont Ratio, including theProfit Margin, Asset Turnover, and Financial Leverage Ratios.Required As a member of a team, you will produce a 5–7-page paperthat will show your calculations of each of these ratios for thecompany’s 2 most recent years. In addition, you will provide abrief analysis of each of the ratios. You will also provide a briefevaluation regarding the company’s performance as it relates to thefour categories listed above, plus the DuPont Equation. Finally,you will discuss how these ratios will help you make appropriatefinancial decisions as they relate to your role as a financialmanager, and also assist in achieving the firm’s financialmanagement goals. In addition, your team will also produce a 7-10minute narrated PowerPoint presentation using VoiceThread or asimilar tool that discusses the analysis of at least one ratio fromthe each of the four categories above. In addition, you must alsodiscuss your DuPont Equation results. Finally, you must discuss howthese ratios can be used to help you make appropriate decisions inyour role as a treasurer or controller. All team member must beinvolved in the narration of the presentations. As this is acollaborative project, an online collaboration tool (such as BigBlue Button or Cisco Spark) must be used to conduct your teammeetings. Evidence must be provided that the tool was used forthree weekly team meetings. As with all papers and projects, APAstandards are to be followed for all portions of this paper,including but not limited to proper referencing and citations.

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4.3 Ratings (777 Votes)

1 Profitability Ratios Gross Margin Percentage Gross margin is a companys total sales revenue minus its cost of goods sold COGS divided by total sales revenue expressed as a percentage The gross margin represents the percent of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services it sells The higher the percentage the more the company retains on each dollar of sales to service its other costs and debt obligations EBIT Margin Percentage It is an assessment of firms Operating Profitability as apercentage of its total Revenue As the name suggest it states as Earning Before iterest and See Answer

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In: AccountingACCT 500: Signature Assignment: Finance Assessment –pick a random companyPart A: Financial Statement Analysis...ACCT 500: Signature Assignment: Finance Assessment –pick a random companyPart A: Financial Statement Analysis Select the most recentfinancial set of financial statements for the company of yourchoice. Be sure to have your company approved by your professor.Here is the scenario for your project: You are the newly appointedtreasurer and your partner is the newly appointed controller ofyour company. In order to learn more about your company, you havedecided to analyze the company’s financial performance over thelast 2 years. To do this, you have decided to calculate thefollowing ratios for the company’s 2 most recent years in the notedcategories: 1. Profitability Ratios a. Gross Margin Percentage b.EBIT Margin Percentage 2. Resource Management Ratios: a. Age ofInventory b. Age of Accounts Receivable c. Age of Accounts Payable3. Liquidity Ratio: a. Current Ratio 4. Leverage Ratios a.Debt-to-Assets Ratio b. Debt-to-Equity Ratio c. Interest CoverageIn addition, you have decided to evaluate the Return on Equity(ROE) of the company by calculating the DuPont Ratio, including theProfit Margin, Asset Turnover, and Financial Leverage Ratios.Required As a member of a team, you will produce a 5–7-page paperthat will show your calculations of each of these ratios for thecompany’s 2 most recent years. In addition, you will provide abrief analysis of each of the ratios. You will also provide a briefevaluation regarding the company’s performance as it relates to thefour categories listed above, plus the DuPont Equation. Finally,you will discuss how these ratios will help you make appropriatefinancial decisions as they relate to your role as a financialmanager, and also assist in achieving the firm’s financialmanagement goals. In addition, your team will also produce a 7-10minute narrated PowerPoint presentation using VoiceThread or asimilar tool that discusses the analysis of at least one ratio fromthe each of the four categories above. In addition, you must alsodiscuss your DuPont Equation results. Finally, you must discuss howthese ratios can be used to help you make appropriate decisions inyour role as a treasurer or controller. All team member must beinvolved in the narration of the presentations. As this is acollaborative project, an online collaboration tool (such as BigBlue Button or Cisco Spark) must be used to conduct your teammeetings. Evidence must be provided that the tool was used forthree weekly team meetings. As with all papers and projects, APAstandards are to be followed for all portions of this paper,including but not limited to proper referencing and citations.